A California-based developer of large-scale solar power projects has started soliciting interest from farmers and other landowners in at least two Illinois Counties – Grundy and Livingston. Cypress Creek Renewables, LLC has developed large, multi-acre solar power projects in several states in the U.S., and is attempting to extend its reach into Illinois. In order to develop a project, Cypress Creek typically leases 10 - 40 contiguous acres, the flatter the better, for up to 40 years (typically 20 years base term and successive 5 year renewal options). After an initial diligence period, if the site is suitable, Cypress Creek will install a series of photovoltaic panels elevated on structures a few feet above the ground.
These types of projects take land out of agricultural production until the lease expires and the solar facilities are removed. Cypress Creek is offering to pay a flat amount to the landowner during the initial diligence period, and if it decides to build the project, would pay a flat annual amount per acre, with an annual escalation factor, for the life of the project. The form of land lease Cypress Creek is proposing contains many important terms and conditions, and landowners are advised to consult an attorney experienced with long term land leases and easements for energy projects.
Shay Law, Ltd. was retained by landowners who Cypress Creek has approached about a land lease, and we are available to represent others as well. Our experience in negotiating leases and easements on the behalf of landowners for wind energy projects, gas and oil pipelines, and electric transmission lines provides us valuable experience in providing quality legal representation to landowners who may wish to negotiate land lease terms, both financial and non-financial, with developers like Cypress Creek Renewables.